How to invest in Avalanche with a Avalanche IRA

What is Avalanche?

Over the past decade, the market for various types of cryptocurrencies has dramatically transformed. As time has gone on, crypto developers have identified both the benefits and drawbacks of pre-existing cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and others. In response, new cryptocurrencies, including the innovative Avalanche Coin, have been created to address previous shortcomings and offer users a more optimized crypto experience. 

Initially launched in 2020, Avalanche (AVAX) is a cryptocurrency that has been deemed the “Ethereum killer” by some observers. While Ethereum performs well in the decentralized finance (Defi) marketplace, a few of its most common criticisms are that Ethereum is slow, creates high fees, and creates an undue burden on the environment. 

The Avalanche Network was created specifically to create a somewhat similar type of crypto but without the aforementioned issues. The network describes itself as “Blazingly fast, low cost, and eco-friendly”, which has helped increase its appeal to many investors. 

Currently, Avalanche can process as many as 4,500 transactions per second, making it considerably faster than many of the available alternatives. Additionally, the use of an open-source platform helps further the push toward universal democratization that has proven to be essential in the broader crypto movement. 

The Basics of Avalanche

Avalanche claims to be “an open, programmable smart contracts platform for decentralized applications.” In other words, it is intended to be an excellent platform for building reliable and decentralized applications, launching customized blockchains, and scaling to additional validators with minimal hardware needs. 

There are, without a doubt, a few components of Avalanche that help distinguish it from comparable coins: 

• User-Controlled Coin Creation: contrary to some alternatives, Avalanche users can govern just how fast new coins are created. While the Avalanche network has (currently) imposed a 720 million coin cap, currently holders of AVAX have the ability to vote on how quickly new coins are introduced. 
• Focus on Minimizing Transaction Costs: the cost of initiating a transaction is one of the most important things developers consider when selecting a cryptocurrency to use on their platforms. Keeping the spirit of democratization in mind, holders of Avalanche have the ability to vote on the fee structure, allowing it to become more stable and generally minimized. 
• Built-In Incentives: AVAX seeks to encourage faster participation within the Avalanche network, which is it increases rewards for users that are able to generate fast response times and high uptime. 
• Advanced Consensus: unlike other strategies for establishing consensus, Avalanche necessitates multiple subsets of participants to confirm any transaction before it is finalized—nevertheless, the processing time for Avalanche is still quite fast. 

Through the use of these basic mechanisms, Avalanche has been able to attract an ever-growing user base. For example, the platform very recently witnessed a $7 million token sale that helped facilitate the transfer of the “blockbuster game Shrapnel.”  

Key Concepts of Avalanche

When people ask, “what is Avalanche?”, the clearest answer is the solution to many problems within the crypto world. There are a few key concepts that have caused users to choose Avalanche over the many crypto alternatives currently available: namely, Avalanche is fast, efficient, affordable, and has a minimal impact on the environment. 

Through the use of proof-of-stake (PoS) mechanisms, the Avalanche Network can operate more swiftly than its counterparts while creating minimal security risks. Though the Avalanche coin is just two years old, it has proven itself to be able to outperform many of its more well-known competitors, including Ethereum. 

Avalanche vs. Ethereum

Currently, one of the biggest rivals of Avalanche is Ethereum which, through the use of its Ether cryptocurrency, is the second biggest cryptocurrency in circulation (measured by market cap). The most obvious benefit of using Ethereum is that it is a well-established, relatively stable coin that is often the preferred currency for new non-fungible tokens (NFTs). 

However, while Ethereum might have an apparent brand recognition advantage, Avalanche appears to perform much better in terms of actual functionality. For example, while Ethereum, the seemingly pro-growth coin, is capable of processing just 15 transactions per second, Avalanche is capable of processing an astounding 4,500. 

Additionally, the fact that Avalanche uses a proof-of-stake mechanism in order to validate ownership, Ethereum still uses a proof-of-work mechanism (though this might change). Through the use of a proof-of-stake mechanism, Avalanche is able to offer users a more environmentally friendly coin usage process, something that has proven itself to be critical in the rapidly-evolving crypto environment.  

How to Buy Avalanche

A popular option for users looking  to buy Avalanche (AVAX) is through a crypto IRA, such as Bitcoin IRA. This innovative platform makes it easy for users to not only become an investor in some of the world’s most profitable cryptocurrencies but to also use these investments as a key component of your broader retirement strategy. Plus, there are tax advantages to investing in crypto through a self-directed IRA. Avalanche is a highly useful cryptocurrency with substantial growth potential; both factors have helped it assert itself as one of the most valuable coins in circulation.